Truist Securities maintains buy rating on CrowdStrike stock after earnings

Published 03/06/2025, 22:14
© Reuters

On Tuesday, Truist Securities analysts reiterated a Buy rating for CrowdStrike Holdings (NASDAQ: NASDAQ:CRWD) stock, maintaining a price target of $450.00. The reaffirmation follows the company’s release of its first-quarter FY2026 results, which exceeded both Truist’s expectations and those of the broader market. According to InvestingPro data, CRWD has delivered impressive returns with a 55% gain over the past year, though current analysis suggests the stock is trading above its Fair Value.

CrowdStrike reported revenue of $1.1 billion for the quarter, marking a 20% increase year-over-year. This result was in line with the firm’s consensus estimate and the company’s own guidance range. Operating income was reported at $201.1 million, with an 18% margin, surpassing the consensus estimate of $178.6 million and a 16.2% margin. The company’s net new annual recurring revenue (ARR) stood at $194 million, outperforming the expected $175 million. InvestingPro data shows the company maintains strong fundamentals with a healthy current ratio of 1.77 and operates with moderate debt levels, while achieving an impressive 29.4% revenue growth over the last twelve months.

Despite the strong quarterly performance, CrowdStrike stock experienced a 6% decline in after-hours trading. This drop comes as investors opted to take profits following a 40% year-to-date increase in the stock’s value prior to the earnings announcement. The company maintained its FY26 revenue guidance of $4.74 billion to $4.81 billion but raised its operating income guidance to a range of $970.8 million to $1,010.8 million. For deeper insights into CRWD’s valuation and growth prospects, including 12+ additional ProTips and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro.

Truist Securities analysts continue to support CrowdStrike, citing the company’s advantageous position amidst recent cyberattacks and its potential benefits from vendor consolidation due to its extensive product offerings. The analysts await further insights from the company’s earnings call scheduled for later today before making any adjustments to their projections.

In other recent news, CrowdStrike Holdings is preparing to report its fiscal first-quarter 2026 earnings, with analysts expressing confidence in the company’s financial performance. Wedbush analysts raised their price target for CrowdStrike to $525, citing strong deal activity and anticipated growth in net new annual recurring revenue. Rosenblatt also increased its price target to $515, highlighting the company’s role in IT consolidation and its expected revenue growth. JPMorgan analysts set a new price target of $500, noting strong retention rates and platform utilization, though they expressed caution about elevated market expectations. Cantor Fitzgerald maintained an Overweight rating with a $475 price target, recognizing potential growth but advising caution due to market challenges. UBS raised its price target to $545, maintaining a Buy rating and expressing optimism about CrowdStrike’s long-term growth despite some near-term challenges. These developments reflect a generally positive outlook among analysts regarding CrowdStrike’s future performance and growth potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.